Stablecoins were touted as a game-changer when they first emerged. Pegged to fiat currencies, they promised speed, security, global reach, and stability in the volatile crypto ecosystem.
The idea was to bridge the gap between traditional finance and crypto. They would enable everyday transactions, cross-border payments, lending, borrowing, and give unbanked populations access to dollar-denominated value.
However, what actually happened is that stablecoins mostly sit idle in wallets, waiting for markets to move. Traders park money in them between positions, exchanges use them as a base currency, and investors rotate into them when markets get rough.
The anticipated wave of lending, borrowing, and capital-intensive activity built around stablecoins never materialized at scale.